Shipe, Cloud & Co. v. Repass

69 Va. 716, 28 Gratt. 716
CourtSupreme Court of Virginia
DecidedJuly 26, 1877
StatusPublished
Cited by21 cases

This text of 69 Va. 716 (Shipe, Cloud & Co. v. Repass) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shipe, Cloud & Co. v. Repass, 69 Va. 716, 28 Gratt. 716 (Va. 1877).

Opinion

Christian, J.

The original bill in this case was filed by the judgment creditors of James B. Hurt, for the purpose of vacating an alleged fraudulent deed by which he conveyed a certain tract of land to his son John B. Hurt. The evidence conclusively proved that the said deed was fraudulent. It was so declared by the circuit court, and from its decree, in that respect, there is no appeal. So that much of the voluminous evidence in this record need not be considered by this court.

[720]*720The main controversy we have to determine arises between the judgment creditors of Jas. B. Hurt, and the appellee, Repass, and is a question of priority of liens between them, upon the land directed to be sold by the decree of the circuit court; Repass claiming a vendor’s lien as superior to the liens acquired by the judgment creditors. This land had been purchased by Repass in the year 1859, and conveyed by him to Stuart, trustee, to secure the purchase money. After-wards, Repass becoming embarrassed, filed his petition in bankruptcy, and was, upon regular proceedings, adjudicated a bankrupt, and Holbrook was appointed his assignee. In 1869, the land was sold by the assignee, with the assent of the trustee. At this sale, Repass became the purchaser, at the sum of $4,600, of which sum $875 was to be paid in cash. The cash payment, except the sum of $74.83, was paid; but Repass being in default to this extent, and also in default, as Stuart claimed, as to the bonds which were to be given for the deferred payments, Stuart, the trustee, again advertised and sold the land to Hounshell. Repass, after this sale, being still in possession of the land, refused to deliver possession to Hounshell, and filed his bill in equity in the circuit court of "Wythe, in which he tendered the balance of the cash payment, with certain bonds, which he claimed were sufficient to meet the deferred payments, and praying for specific performance and confirmation of the sale made to'him, by his assignee and Stuart, and for an injunction of all proceedings under the sale to Hounshell.

Pending this suit, Repass being still in possession, made a contract for the sale of this land to James B. Hurt, which was reduced to writing, but which was never recorded. In that contract of sale, it was stipu[721]*721lated that Repass should retain a lien upon the land for the security of the purchase money.

While Hounshell was claiming the land under purchase from Stuart, and Repass was insisting upon the specific execution of his contract of sale made by r J the assignee in bankruptcy, with the assent of the trustee an adjustment of their conflicting claims was made, by which Hounshell and Repass both united in a deed conveying the land to Hurt; Stuart agreeing to accept the bonds of Hurt for the deferred payments, due from Repass. In this deed there is an interlineation in these words, “A lien is hereby reserved by said Repass to secure the performance of said Hurt’s contract with him herein referred to.” It is contended by the appellants, that this interlineation was not made before the delivery of this deed. Much conflicting evidence is contained in the record on this point; but I think the decided preponderance of this testimony is in favor of the fact, that the interlineation was made before signing and delivery of the deed. The evidence to sustain this fact is the more conclusive, because it is entirely consistent with the manifest intention of the parties as evidenced by their written contract of sale for the same land, which expressly reserved the vendor’s lien. It is not reasonable to suppose that Repass, after making such a contract with Hurt, should have failed to retain the same lien when he came to convey the legal title. Hor is it a reasonable conjecture that Hurt, who had in terms contracted that the purchase money should be secured by a vendor’s lien, should afterwards have refused to accept the deed, because it contained the provisions retaining the lien for which he had already solemnly stipulated.

The testimony of Repass, supported as it is by that [722]*7220f his attorney, Caldwell, and by all the circumstances of the case, I think is conclusive to shew, that the from Repass and Hounshell, retaining the vendor’s lien (by interlineation), was delivered to Hurt and accepted by him. But whether it was or not, is really not material to the decision of the controversy between the judgment creditors of Hurt and Repass. If the deed retaining the vendor’s lien was in fact never delivered by Iiepass and accepted by Hurt, the rights of the parties are then to be fixed by the contract of sale. If the deed be treated as a nullity, because of non-delivery and non-acceptance, still, the contract of sale remains of binding force, and that contract in terms reserves a lien upon the land as security for the purchase money.

The question we have to determine is, whether the judgment creditors of Hurt have acquired by their judgment, a superior lien to that of Repass, retained as a vendor’s lieu in the contract of sale referred to. It is true this contract of sale was never recorded. But the question is not to be determined by the provisions of the registry acts. It must depend upon principles outside of and independent of those acts. Whether the contract of sale was recorded or not, can make no difference. The lien of the judgment creditor operates only on the estate which belongs to the debtor.

The title of Hurt to this land, sought to be subjected to the judgments in this case, was subordinate to the lien of Repass, reserved in the contract of sale. Hurt could not have compelled a conveyance of the legal title to him, except upon condition that the balance of the purchase money, for which the land was security, was first paid. A judgment can confer upon the creditor no greater or better estate than the debtor [723]*723had. Whatever the debtor owns (except that which is exempted by statute),- is subject to the- lien of the .judgment creditor; but the lien cannot cover that the debtor does not own. As was said by Judge Staples, in Floyd, trustee v. Harding, (not yet reported), supra 401, “It has been over and over decided, that the judgment creditor can acquire no better right to the estate than the debtor himself has when the judgment is recovered. He takes it subject to every liability under which the debtor held it, and subject to all the equities which exist at the time, in favor of third parties, and a court of chancery will limit the lien of the judgment to the actual interest which the debtor has in the estate. The creditor is in no sense a purchaser—he has no equity whatever beyond what justly belongs to his debtor—his claim is to subject to his lien, such estate as the former owns, and no more. These principles have been time and again announced by the courts of England—by this court, and by the supreme court of the United States, and by the courts of many other states of the Union.” See cases cited by Judge Baldwin, in Withers v. Carter, 4 Gratt. 407, and cases cited by Judge Staples, in Floyd, trustee v. Harding, supra 401. In a still more recent case, Borst v. Nalle, supra 423, decided at the late Richmond term, Judge Buries, delivering the unanimous opinion of this court, says: “Authorities might be multiplied without number to show that where statute enactments do not interfere, one creditor can never get by his judgment more than his debtor, actually owns, and to this he will be, as he should be, confined by courts of equity.” See the numerous cases cited by Judge

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Bluebook (online)
69 Va. 716, 28 Gratt. 716, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shipe-cloud-co-v-repass-va-1877.